The Role of Boundary Systems and Diagnostic Control in Controlling Achievement of Performance Targets

Abstract

Boundary systems and diagnostic controls are two levers used to control the achievement of performance targets. We use these levers to analyze how Collection Department of PJ Property achieves the performance targets. PJ Property’s revenue relies to rent revenue. The firm faces difficulty to collect rent revenue from tenants. The collection of rent revenue has decreased in period 2018. This research is a qualitative research with case study method. The case study we used in this study is on Collection Department. Collection Department is underperformed in 2018. The results showed that the underperformance of Collection Department is caused by first; there are no consequences for performing or underperforming of in achieving department’s performance targets. Second, boundary systems are weakly implemented. Third, the diagnostic controls are also poorly implemented.

Keywords

• boundary system
• diagnostic control
• performance targets